Netflix (NASDAQ:NFLX) Trading 4.7% Higher – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded up 4.7% during trading on Thursday . The stock traded as high as $78.44 and last traded at $77.65. Approximately 54,443,650 shares traded hands during trading, an increase of 20% from the average session volume of 45,424,070 shares. The stock had previously closed at $74.19.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is outperforming a weak tech market, with investors treating the stock as a defensive relative winner on a risk-off day. Netflix Stock Defies Tech Sell-Off Thursday: Whats Going On?
• Positive Sentiment: Buyers are stepping in because Netflix’s lower valuation, ongoing ad-tier growth, and recent selloff have made the shares look more attractive to value-oriented investors. NFLX Stock Climbs 3.95% as Valuation and Ad Growth Lift Demand Now
• Positive Sentiment: Bulls are also focusing on fundamentals: Netflix revenue is at record levels, the ad-supported tier is gaining traction, and management’s $25 billion buyback authorization signals confidence in the stock’s long-term value. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Neutral Sentiment: Several recent articles argue Netflix is approaching a potential turnaround zone after becoming deeply oversold technically, but this is still a thesis rather than a confirmed reversal.
• Neutral Sentiment: There is renewed speculation that a media deal involving NBCUniversal and Netflix could emerge, but the market appears to be treating that as a longer-shot catalyst rather than a current driver. Comcast Spinoff Could Rejuvenate Its Depressed Stock
• Negative Sentiment: Some commentary still warns the stock could be a bull trap, reflecting lingering skepticism after a large multi-month pullback and ongoing debate over whether the recovery is sustainable.

Wall Street Analysts Forecast Growth

NFLX has been the subject of several analyst reports. Weiss Ratings downgraded shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Netflix in a research note on Wednesday, April 22nd. China Renaissance raised their target price on Netflix from $90.00 to $100.00 and gave the stock a “hold” rating in a research report on Friday, April 17th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Netflix in a report on Thursday, June 4th. Finally, Citigroup reiterated a “market perform” rating on shares of Netflix in a research report on Thursday, June 18th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $114.26.

Netflix Stock Up 4.7%

The stock’s 50-day simple moving average is $84.07 and its 200 day simple moving average is $88.49. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a market cap of $326.97 billion, a P/E ratio of 25.08, a PEG ratio of 0.91 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the previous year, the business earned $6.61 EPS. The firm’s revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, research analysts forecast that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Transactions at Netflix

In other Netflix news, Director Reed Hastings sold 407,550 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the transaction, the director directly owned 3,940 shares of the company’s stock, valued at approximately $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at $6,563,353.65. The trade was a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 899,839 shares of company stock valued at $80,141,661. 1.24% of the stock is owned by insiders.

Institutional Investors Weigh In On Netflix

Several hedge funds and other institutional investors have recently bought and sold shares of NFLX. Checchi Capital Advisers LLC grew its holdings in shares of Netflix by 875.7% during the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after buying an additional 27,951 shares during the last quarter. Contravisory Investment Management Inc. raised its holdings in shares of Netflix by 837.2% in the 4th quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock worth $10,443,000 after acquiring an additional 99,496 shares during the last quarter. BNC Wealth Management LLC raised its holdings in shares of Netflix by 991.3% in the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock worth $3,866,000 after acquiring an additional 37,451 shares during the last quarter. Crew Capital Management Ltd lifted its position in Netflix by 1,021.9% in the 4th quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock valued at $847,000 after acquiring an additional 8,226 shares in the last quarter. Finally, Family Capital Trust Co lifted its position in Netflix by 20,869.5% in the 4th quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock valued at $2,576,000 after acquiring an additional 27,339 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.